Case Study 2 (Buy to Let)

No1 West India Quay, Canary Wharf E14

This deal is due to complete in April 2005.

Background

Rising 33 storeys above the Canary Wharf quayside into the unique 21st century skyline, No.1 West India Quay combines six spectacular penthouses, 152 luxury apartments, 47 serviced apartments, a 301 room Marriott hotel and restaurant and leisure facilities all within one landmark building.

The deal included four x two bedroom apartments and one Duplex apartment. All apartments have a 999 year lease and excellent corporate rental demand with current rental values of between £950 and £1,300 per week. Each luxury apartment has floor to ceiling windows, air conditioning, top quality kitchens and bathrooms, 24 hour- 7 day a week concierge and Marriott hotel room service.

Deal for Investors

For this deal investors were asked to raise £150,000 in order for GLM to exchange contracts on the 5 apartments. This allowed GLM to then sell them on at a discount to market value prior to completion. GLM negotiated a 23% discount on the apartments and have passed on 19% to clients and 21% to investors*

Investor’s funds were required for a period of 4 weeks and they were offered an attractive interest rate for the duration of the money lent.

Therefore the initial £150,000 invested returned £157,500 over the 4 week period

*Investors were also given the opportunity of an added 2% discount on what was offered to GLM’s clients. This enabled them to purchase at a 17% discount + stamp duty paid.

Deal for purchasers

Clients were given a choice of 2 investment options, either:

• Full 15% discount plus Stamp Duty paid, or
• Stamp Duty paid and two year Rental Guarantee of 7.5%